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NewBase Energy News 12 December 2022 No. 1573 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: TAQA, ADNOC, and Mubadala complete transaction for
stake in Masdar clean energy powerhouse
Source: Masdar
Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company
(Mubadala) and Abu Dhabi National Oil Company (ADNOC) have announced the successful
completion of the Masdar transaction, following which they will all become shareholders in Abu
Dhabi Future Energy Company (Masdar) ā€“ Abu Dhabiā€™s flagship clean energy company.
This transaction ā€“ first announced in December last year by His Highness Sheikh Mohamed bin
Zayed Al Nahyan, President of the United Arab Emirates ā€“ sees three Abu Dhabi champions
combining their efforts to rapidly grow Masdar on a global scale under an expanded mandate
covering renewable power, green hydrogen and other enabling clean energy technologies.
TAQA is taking the leading role in Masdarā€™s renewable business with a 43% shareholding, while
Mubadala retains 33% and ADNOC holds 24%. ADNOC is taking the leading role in Masdarā€™s green
hydrogen business with a 43% stake, Mubadala holding 33%, and TAQA 24%. The partnership sets
out to develop Masdar into a global clean energy powerhouse that consolidates the renewable
ww.linkedin.com/in/khaled-al-awadi-80201019/
ļ‚· New Masdar outlines ambitious growth plans to bolster position
as a global leader in clean energy and green hydrogen
ļ‚· Masdar targets at least 100GW renewable energy capacity and
the production of up to 1 million tons of green hydrogen by 2030,
with aspirations to grow its renewable energy portfolio to
+200GW
ļ‚· TAQA to take leading role with largest stake (43%) in Masdarā€™s
renewables business and ADNOC to take the leading role (43%) in
green hydrogen business with Mubadala holding 33% in each
ļ‚· New Masdar to play central role in delivering the UAEā€™s Net Zero
by 2050 Strategic Initiative and will be a global champion for
clean energy
ļ‚· Refreshed Masdar brand unveiled for UAEā€™s new clean energy
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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energy and green hydrogen efforts of TAQA, Mubadala, and ADNOC under a refreshed single
Masdar brand. TAQA paid USD 1.02 billion [AED 3.7 billion] in cash for its stake.
Mubadala established Masdar in 2006 to extend the UAEā€™s leadership role in the global energy
sector, while helping drive the nationā€™s economic diversification and climate action agenda. Today,
Masdar is active in more than 40 countries across six continents and has developed and invested
in worldwide projects with a combined value of over USD 20 billion.
Under the new partnership, Masdar will become a national clean energy champion for the UAE and
has an ambitious target of growing to at least 100GW of renewable energy capacity globally by
2030. The largest share of this capacity will come from wind and solar technologies. Beyond its
initial goals, the company aspires to develop in excess of 200 GW of renewable energy, reinforcing
its position as a world leader in the renewable energy sector.
In addition, Masdarā€™s new green hydrogen business will rapidly scale up and target an annual green
hydrogen production capacity of up to 1 million tonnes by 2030, equivalent to saving more than six
million tons of CO2 emissions.
Green hydrogen, which is produced using water and renewable energy, is fast emerging as an
important carbon-free fuel for the decarbonisation of hard to abate sectors such as heavy industry.
It is expected to play a critical role in meeting the worldā€™s net zero aspirations, with Masdar and the
UAE set to take a leading role in the hydrogen economy.
The new Masdar will target growth opportunities around the world including in the US, MENA, CIS,
APAC, and key European countries as well as playing a central role in providing the clean energy
needed for the UAE to achieve its own 2050 net zero target. Growth is expected to come from a
combination of new and existing projects, as well as acquisitions.
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology,
Managing Director and Group CEO of ADNOC, and Chairman of Masdar said: 'As the founding
CEO of Masdar, I am excited to see Abu Dhabiā€™s energy leaders coming together to take Masdar to
the next level.
The Masdar clean energy powerhouse will unlock a new chapter of growth, development, and
opportunity for renewable energy and green hydrogen projects, both in the UAE and worldwide. As
the UAE delivers on its Net Zero by 2050 strategic initiative and prepares to host COP28 next year,
by leveraging the skills and experience of its partners, Masdar will build on its rich legacy as a
pioneer in the renewable energy sector, accelerate the delivery of world-scale projects, and help
meet the worldā€™s growing demand for clean energy.
For ADNOC, our participation in Masdar is an important pillar in our strategy to expand clean energy
production, unlock new opportunities for industrial development and drive decarbonization.'
His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer
of Mubadala said: 'We established Masdar 16 years ago based on an early conviction that building
capabilities and supporting innovation and scale across the clean energy spectrum would be
transformative for the nation and an investment in future generations.
Today, Masdar is one of the worldā€™s fastest-growing renewable energy companies. This significant
milestone helps unlock synergies in Masdarā€™s continued growth journey and the UAEā€™s global
energy leadership.'
Al Mubarak added: 'Global cooperation is vital to achieving the critical scale in clean energy sources,
and we are committed to leveraging our partnerships to enable Masdar to deliver a broader global
impact.'
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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His Excellency Mohamed Hassan Alsuwaidi, Chairman of TAQA said: 'This transaction marks the
start of Masdarā€™s journey towards becoming one of the largest clean energy companies in the world,
backed by three of the UAEā€™s energy and investment pacesetters. Over the next decade, Masdar
will rapidly expand its renewable energy and green hydrogen investments to accelerate
decarbonization.
Last year, TAQA committed to a renewable energy share of 30% of its total power generation
capacity by 2030. Our stake in Masdar is a key part of delivering on this target, while supporting the
UAEā€™s ambition to cut greenhouse gas emissions and be a driving force in the global energy
transition. Today, we stand as one of the largest integrated utility players in Europe, the Middle East,
and Africa. Tomorrow, we will be known as a pan-regional low carbon power and water champion.'
Alongside the completion of the transaction, a new Board of Directors has been appointed for
Masdarā€™s renewable business with His Excellency Dr. Sultan Ahmed Al Jaber reappointed his
position as Chairman. Members include:
ļ‚· H. E. Mohamed Hassan Alsuwaidi, Deputy Chairman
ļ‚· Jasim Husain Thabet, Board Member
ļ‚· Farid Al Awlaqi, Board Member
ļ‚· Khaled Salmeen, Board Member
ļ‚· Musabbeh AlKaabi, Board Member
ļ‚· Ahmed Saeed Al Calily, Board Member
ļ‚· Dr. Bakheet Saeed Al Katheeri, Board Member
Mohamed Jameel Al Ramahi will continue as Chief Executive Officer (CEO) of the enlarged Masdar.
As part of the deal, TAQA will offer to contribute its ownership interests in future Abu Dhabi
renewable power projects to Masdar. Masdar City, Abu Dhabiā€™s flagship sustainable urban
development, will continue to remain under Mubadalaā€™s ownership as the sole shareholder.
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Saudi Arabia seeks bids for Jubail 4 & 6 desalination project
TradeArabia News Service
Saudi Water Partnership Company (SWPC) has invited expressions of interest (EoIs) from leading
developers to finance, build, operate and maintain a key seawater reverse osmosis (SWRO)
desalination water project near Jubail Industrial City.
The desalination plant will be located 18 km south of Jubail Industrial City in the kingdom, adjacent
to the existing plant units (Jubail Phase 1, Jubail Phase 2, Jubail 3A & 3B), in the Eastern Province
of the kingdom.
The Jubail 4 & 6 Independent Water Project, which includes the desalination plant and all
associated infrastructure and facilities, will boast a total capacity of 600,000 cu m potable water per
day.
The power supply to the project will be provided from the Saudi Electricity Companyā€™s high voltage
network, it added. SWPC said it will be conducting a competitive tender process to select a private
developer/developer consortium taht will provide financing, procurement, implementation, operation
and maintenance services for the project.
The successful bidder, through a project company to be incorporated, would then develop the plant
and sell the entire capacity and output to SWPC under a 25-year concession pursuant to a Water
Purchase Agreement. The Saudi utility developer has set January 9, 2023 as the deadline for
submitting the bids. Leading professional advisors have been signed up for the key project. KPMG
Professional Services is the lead advisor and financial advisor; Eversheds Sutherland (International)
the legal advisor and WSP the technical advisor.-
Dewa receives 29 EoIs for Phase I Hassyan SWRO project
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U.A.E: Dewa receives 29 EoIs for Phase I Hassyan SWRO project
TradeArabia News Service
Dubai Electricity and Water Authority (Dewa) has announced that 29 major developer/developer
consortiums have expressed their interests for the first phase of the 120 million gallons per day
(MIGD) Hassyan Sea Water Reverse Osmosis plant.
This is the first project implemented by Dewa using the IWP model, which will run in phases during
2025 and 2026. A consortium of companies, including Deloitte, WSP and Addleshaw Goddard,
have been signed up to provide consultancy services for the Hassyan desalination project.
"We use clean solar power to desalinate seawater using the latest reverse osmosis (RO)
technologies, which consume less energy. This supports the UAE Water Security Strategy 2036,"
remarked Saeed Mohammed Al Tayer, the MD and CEO of Dewa.
"According to our plans, 100% of desalinated water will be produced by a mix of clean energy that
uses both renewable energy and waste heat. This will allow Dubai to exceed global targets for using
clean energy to desalinate water," said Al Tayer.
Increasing the operational efficiency in decoupling desalination from electricity production will save
around AED13 billion ($3.5 billion) and reduce carbon emissions by 2030," he added.-
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 6
U.S. dry natural gas production set monthly records in 2022
source: U.S. Energy Information Administration, Short-Term Energy Outlook
U.S. dry natural gas production has increased during 2022, averaging more than 100 billion cubic
feet per day (Bcf/d) in October and November and exceeding pre-pandemic monthly production
records from 2019. We forecast that U.S. production of dry natural gas will average about 100.0
Bcf/d from December through March , down about 0.5 Bcf/d from November.
This forecast production decrease is primarily due to weather, specifically the possibility of extreme
winter weather events and freeze-offs. Mild weather in key producing regions could prevent those
declines.
The 2022 growth in natural gas production has been driven by increased drilling activity in the
Haynesville region in Louisiana and East Texas and in the Permian region in West Texas and
Southeast New Mexico. Recent pipeline infrastructure expansions in both of these regions facilitated
the increases in production.
We expect dry natural gas production in 2022 to set an annual record in the United States, averaging
98.0 Bcf/d. We forecast production to grow slightly in 2023, averaging between 100 Bcf/d and 101
Bcf/d for the year, about 2% more than in 2022. Production in our forecast for the first half of 2023
is limited by pipeline constraints and declining natural gas prices.
We expect natural gas prices at the U.S. Henry Hub benchmark to average $5.62 per million British
thermal units (MMBtu) in the first half of 2023, compared with our expected December 2022 monthly
average of $6.34/MMBtu.
In the second half of 2023, developers have scheduled more pipeline infrastructure expansion
projects and those projects should contribute to increases in dry natural gas production. If these
projects are delayed, it could result in less U.S. natural gas production than we forecast.
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U.S. battery storage capacity will increase significantly by 2025
Developers and power plant owners plan to significantly increase utility-scale battery storage
capacity in the United States over the next three years, reaching 30.0 gigawatts (GW) by the end of
2025, based on our latest Preliminary Monthly Electric Generator Inventory.
Developers and power plant owners report operating and planned capacity additions, including
battery storage, to us through our electric generator surveys. Battery storage capacity in the United
States was negligible prior to 2020, when electricity storage capacity began growing rapidly.
As of October 2022, 7.8 GW of utility-scale battery storage was operating in the United States;
developers and power plant operators expect to be using 1.4 GW more battery capacity by the end
of the year. From 2023 to 2025, they expect to add another 20.8 GW of battery storage capacity.
The remarkable growth in U.S. battery storage capacity is outpacing even the early growth of the
countryā€™s utility-scale solar capacity. U.S. solar capacity began expanding in 2010 and grew from
less than 1.0 GW in 2010 to 13.7 GW in 2015.
In comparison, we expect battery storage to increase from 1.5 GW in 2020 to 30.0 GW in 2025.
Much like solar power, growth in battery storage would change the U.S. electric generating portfolio.
Battery storage adds stability to variable energy sources such as wind and solar. Wind and solar
are both intermittent resources; they can only provide electricity when the wind is blowing or when
sunshine is available. Batteries solve the intermittency problem by storing extra energy produced
by wind or solar generators for use later.
More than 75% of the 20.8 GW of utility-scale battery capacity that owners and operators reported
that they plan to install from 2022 to 2025 is located in Texas (7.9 GW) and California (7.6 GW).
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The large amount of existing and planned solar and wind capacity in California and Texas present
a growing need for batter y storage. More utility-scale solar capacity is located in California than in
any other state, 16.8 GW, and developers expect to add another 7.7 GW between 2023 and 2025.
A total of 10.5 GW of utility-scale solar capacity is located in Texas; developers plan to install
another 20.4 GW between 2023 and 2025. In addition, 37.2 GW of wind capacity is located in Texas,
more than in any other state, and developers expect to add an additional 5.3 GW over the next three
years.
As more battery capacity becomes
available to the U.S. grid, battery
storage projects are becoming
increasingly larger in capacity. Before
2020, the largest U.S. battery storage
project was 40 MW. The 250 MW
Gateway Energy Storage System in
California, which began operating in
2020, marked the beginning of large-
scale battery storage installation.
At present, the 409 MW Manatee
Energy Storage in Florida is the largest
operating battery storage project in the
country. Developers have scheduled
more than 23 large-scale battery
projects, ranging from 250 MW to 650
MW, to be deployed by 2025.
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Netherlands plans to build two nuclear power plants by 2035
Bart Meijer, Reuters News + NewBase
The Netherlands is planning to build two new nuclear power plants by 2035, which should supply
up to 13% of the country's total electricity production by then, the Dutch government said on Friday.
The power plants need to play an important role in the country's energy transition, as the
Netherlands aims to make its power production carbon neutral by 2040.
The Netherlands derived 12% of its energy from sustainable sources last year. The government
expects to build the new plants close to the only one that's currently operational in the Netherlands,
in Borssele in the southwest of the country.
The government had earlier earmarked 5 billion euros ($5.3 billion) for building new nuclear power
plants, out of a total fund of 35 billion euros dedicated to funding the energy transition in the coming
decade. Building of the two new nuclear plants is expected to start in 2028. ($1 = 0.9480 euros)
Nuclear Power in the Netherlands ( up to date)
ļ‚· The Netherlands has one nuclear reactor generating a small amount of its electricity.
ļ‚· Its first commercial nuclear power reactor began operating in 1973.
ļ‚· A previous decision to phase out nuclear power was reversed, and in 2021 the government
announced plans to build two new nuclear units.
ļ‚· Its main research reactor produces about half of Europeā€™s medical radioisotopes.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase December 12 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil gains on uncertainty over U.S. pipeline restart, Russian supplies
Reuters + NewBase
Oil prices rose more than 1% on Monday as a key pipeline supplying the United States remained
shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western
price cap on its exports.
Brent crude futures were up 46 cents, or 0.6%, at $76.56 a barrel by 0500 GMT. U.S. West Texas
Intermediate crude was at $71.59 a barrel, up 57 cents, or 0.8%.
The price gains on Monday for Brent and WTI follow declines in both grades last week to their lowest
since December 2021 amid concerns that a possible global recession will impact oil demand.
"Oil prices are higher as the Keystone pipeline remains shut, China's COVID controls ease and on
concerns that Russia could reduce output," said Edward Moya, a senior market analyst for OANDA.
On Sunday, Canada's TC Energy (TRP.TO) said it had not yet determined the cause of the
Keystone oil pipeline leak last week in the United States. It gave no timeline as to when the pipeline
would resume operation.
Oil price special
coverage
ļ‚· Brent, WTI rises $1 in early Asian trade
ļ‚· Easing COVID measures in China also supportive of oil
ļ‚· Keystone pipeline operator has not determined cause of leak
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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The 622,000 barrel-per-day Keystone line is a critical artery shipping heavy Canadian crude from
Alberta to refiners in the U.S. Midwest and the Gulf Coast.
China, the world's biggest crude oil importer, continued to loosen its strict zero-COVID policy,
though streets in the capital Beijing remained quiet and many businesses stayed shut over the
weekend, with residents saying a return to normal was a long way off.
Putin said on Friday that Russia, the world's biggest exporter of energy, could cut production and
would refuse to sell oil to any country that imposes a "stupid" price cap on Russian exports agreed
by G7 nations.
While the uncertainty surrounding European Union sanctions on Russian oil and the related price
cap kept volatility high on prices, the sanctions have had a limited impact on global markets so far,
ANZ analysts said in a note.
Saudi Arabia's energy minister also said on Sunday that the impact of the European sanctions and
price cap measures had had no clear results yet, and that its implementation was still unclear.
In the U.S., Treasury Secretary Janet Yellen forecast a substantial reduction in U.S. inflation in
2023, barring an unexpected shock.
China has been moving away from its Covid Zero policy following a wave of protests, offering
prospects for a revival in demand in the worldā€™s largest crude importer. However, a surge in cases
is now spurring concern on consumption over winter, with industry consultant FGE saying in a note
that the sudden lifting of restrictions could pose downside risks for oil demand.
Crude remains on track for its first back-to-back quarterly decline since mid-2019 as the demand
outlook sours and thin liquidity exacerbates price swings into the year-end. Investors are also
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weighing the fallout from the $60-a-barrel price cap imposed by the Group of Seven and European
Union on Russian crude to punish Moscow for the Ukraine invasion.
The risk of a production cut from Russia could potentially add ā€œfresh support to the market ahead of
what looks like a challenging 2023,ā€ said Charu Chanana, market strategist at Saxo Capital Markets
Pte in Singapore. Supply worries may keep prices elevated despite the risk of lower demand, she
said.
Treasury Secretary Janet Yellen, one the capā€™s architects ā€” gave a qualified thumbs-up on the
initiative, telling CBSā€™s ā€œ60 Minutesā€ that the outcome was ā€œso far, so goodā€. In the Middest East,
meanwhile, Saudi Arabiaā€™s Energy Minister Prince Abdulaziz bin Salman said the impact remained
uncertain.
Following the imposition of the price limit and related curbs, a backlog of tankers waiting to haul oil
through Turkeyā€™s vital shipping straits built up amid a dispute over insurance cover. That now
appears to be clearing, with a port agent tally on Sunday showing 19 tankers waiting to pass through
the Bosphorus and Dardanelles straits, down from a total of 27 on Saturday.
Key spreads for WTI and Brent continue to hold in contango, indicating ample near-term supply.
Brentā€™s prompt spread ā€” the difference between the two nearest contracts ā€” was 39 cents a barrel
in contango, compared with $1.58 a barrel in the opposite backwardated structure about a month
ago.
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NewBase Specual Coverage
The Energy world ā€“December -01 -2022
CLEAN ENERGY
Europe set to import banned Russian diesel without knowing
REUTERS + NewBase
The European Union banned Russian crude imports from Dec. 5 and will ban Russian oil products
from Feb. 5, as it attempts to deprive Russia of oil revenues. Britain ended oil and oil product imports
from Dec. 5
European motorists could find Russian diesel in their tanks even after bans take effect because
regulators lack tools to trace the origin of fuel when it has passed through other countries.
The European Union banned Russian crude imports from Dec. 5 and will ban Russian oil products
from Feb. 5, as it attempts to deprive Russia of oil revenues. Britain ended oil and oil product imports
from Dec. 5.
The challenges in tracking crude once it is refined and diesel once it is blended, mean some Russian
diesel is likely to be delivered to and re-exported from countries such as India and Turkey, market
sources said.
Europe is struggling to replace up to 600,000 barrels per day of Russian supply, according to
Eugene Lindell, refining and products market analyst at consultancy FGE.
However, the reputational risk associated with buying Russian fuel, coupled with insurance
difficulties, means only limited Russian volumes are likely to find their way into Europe, transported
by small players.
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HOW WILL DIESEL CUSTOMS AND EXCHANGES POLICE IMPORTS?
Dutch customs, who oversee the major Amsterdam-Rotterdam-Antwerp trade and storage hub, UK
enforcement authorities, and the Intercontinental Exchange will check official certificates of origin
for import ships.
In case of doubt, UK and Dutch customs can request additional documents to help determine origin,
such as contractual agreements, invoices, or bills of lading.
ICE will also look at discharge certificates and proof from refiners that stock is locally refined.
Participants using the U.S.-based CME group's exchanges must have their own legal advice and
consult delivery terminals to ensure sanctions compliance.
WHEN DOES A CHANGE OF ORIGIN OCCUR?
To accept any diesel as of non-Russian origin, Britain, the European Union and the ICE require it
to be substantially processed outside Russia.
"Processing is regarded as substantial only if it results in the manufacture of a new product or
represents an important stage in manufacture, and it takes places in an undertaking equipped for
that purpose," the UK Government website says.
Blending Russian diesel elsewhere with a non-Russian equivalent would not change its origin, while
refining Russian Urals crude into diesel elsewhere would.
HOW EFFECTIVE ARE THE CHECKS?
Britain, the EU and ICE consider diesel to be Russian if it is shipped and reloaded elsewhere.
Britain says any processing to change the product must be done for commercial purposes, such as
making a finished product to meet new UK specifications, not to avoid the sanctions regime.
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But is it virtually impossible to trace the origin of blended or refined diesel and difficult to track ship-
to-ship (STS) transfers, meaning these aspects of the sanctions depend heavily on "good will", two
industry sources familiar with import and tracking processes said.
The volumes of STS operations between Russian-affiliated tankers have "dramatically increased"
since February, maritime analytics company Windward said.
"If you were to take Russian diesel out to a more flexible port, you could blend it and issue it with a
different bill of lading with a different origin," one of the sources, involved in the storage and transport
of petroleum products, said. The sources declined to be named because they were not authorised
to speak to the media.
HOW WILL THIS AFFECT DIESEL FLOWS?
Russian diesel is likely to be delivered to and re-exported from countries such as India and Turkey,
market sources said.
Russia could use its fleet to move diesel into Turkey where it can be transferred onto medium-range
tankers, two industry sources said.
"I would have thought that Turkey is re-exporting the barrels or perhaps substituting in-country and
exporting more of their domestic output," lead analyst at Kpler Kevin Wright said.
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Britain, the EU and ICE consider diesel refined from Urals outside Russia to be a non-Russian
product, which is likely to result in a further shift in trade flows.
Europe has already started to replace Russian diesel imports with refined product from the Middle
East, but analysts also expect India to refine more Urals and increase diesel exports to Europe.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
WHO COULD TRANSPORT RUSSIAN CARGOES?
The EU price cap, which came into effect on Dec. 5, prohibits shipping, insurance and re-insurance
companies from handling cargoes of Russian crude, unless it is sold for less than the $60 price set
by the Group of Seven nations and its allies.
Many of the larger oil companies, including BP and Shell have self-imposed sanctions on Russian
oil and oil products.
And Russia's determination to stop selling oil to countries or companies abiding by the price cap,
coupled with insurance difficulties, means "mainstream tanker owners will be unable to lift Russian
crude," French shipbroking firm BRS said.
But smaller trading companies are already using shadow fleet tankers, several industry sources
said, adding these have arranged insurance with providers in India.
BRS says 111 elderly tankers have been sold to private shipping companies since February
probably to transport Russian oil.
European buyers are also increasingly receiving Russian diesel under the Delivered Ex-ship
Incoterms rule, which leaves the responsibility for insurance in the hands of the supplier, an industry
source said.
HOW WILL THE SHIFT IN TRADE FLOWS AFFECT DIESEL PRICES?
Dutch cooperative Rabobank expects this "flux of a global rerouting" to result in higher logistical
costs, tighter tanker supply, and ultimately higher prices of imported energy products.
"There is a 35-45 million barrel global deficit in middle distillates," Rabobank said. "This structural
problem is going to last years."
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
NewBase Energy News 12 December 2022 - Issue No. 1573 call on +971504822502, UAE
The Editor:ā€ Khaled Al Awadiā€ Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service ā€“ Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20
Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 21

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NewBase 12-December-2022 Energy News issue - 1573 by Khaled Al Awadi_compressed (1).pdf

  • 1. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 12 December 2022 No. 1573 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: TAQA, ADNOC, and Mubadala complete transaction for stake in Masdar clean energy powerhouse Source: Masdar Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have announced the successful completion of the Masdar transaction, following which they will all become shareholders in Abu Dhabi Future Energy Company (Masdar) ā€“ Abu Dhabiā€™s flagship clean energy company. This transaction ā€“ first announced in December last year by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates ā€“ sees three Abu Dhabi champions combining their efforts to rapidly grow Masdar on a global scale under an expanded mandate covering renewable power, green hydrogen and other enabling clean energy technologies. TAQA is taking the leading role in Masdarā€™s renewable business with a 43% shareholding, while Mubadala retains 33% and ADNOC holds 24%. ADNOC is taking the leading role in Masdarā€™s green hydrogen business with a 43% stake, Mubadala holding 33%, and TAQA 24%. The partnership sets out to develop Masdar into a global clean energy powerhouse that consolidates the renewable ww.linkedin.com/in/khaled-al-awadi-80201019/ ļ‚· New Masdar outlines ambitious growth plans to bolster position as a global leader in clean energy and green hydrogen ļ‚· Masdar targets at least 100GW renewable energy capacity and the production of up to 1 million tons of green hydrogen by 2030, with aspirations to grow its renewable energy portfolio to +200GW ļ‚· TAQA to take leading role with largest stake (43%) in Masdarā€™s renewables business and ADNOC to take the leading role (43%) in green hydrogen business with Mubadala holding 33% in each ļ‚· New Masdar to play central role in delivering the UAEā€™s Net Zero by 2050 Strategic Initiative and will be a global champion for clean energy ļ‚· Refreshed Masdar brand unveiled for UAEā€™s new clean energy
  • 2. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 energy and green hydrogen efforts of TAQA, Mubadala, and ADNOC under a refreshed single Masdar brand. TAQA paid USD 1.02 billion [AED 3.7 billion] in cash for its stake. Mubadala established Masdar in 2006 to extend the UAEā€™s leadership role in the global energy sector, while helping drive the nationā€™s economic diversification and climate action agenda. Today, Masdar is active in more than 40 countries across six continents and has developed and invested in worldwide projects with a combined value of over USD 20 billion. Under the new partnership, Masdar will become a national clean energy champion for the UAE and has an ambitious target of growing to at least 100GW of renewable energy capacity globally by 2030. The largest share of this capacity will come from wind and solar technologies. Beyond its initial goals, the company aspires to develop in excess of 200 GW of renewable energy, reinforcing its position as a world leader in the renewable energy sector. In addition, Masdarā€™s new green hydrogen business will rapidly scale up and target an annual green hydrogen production capacity of up to 1 million tonnes by 2030, equivalent to saving more than six million tons of CO2 emissions. Green hydrogen, which is produced using water and renewable energy, is fast emerging as an important carbon-free fuel for the decarbonisation of hard to abate sectors such as heavy industry. It is expected to play a critical role in meeting the worldā€™s net zero aspirations, with Masdar and the UAE set to take a leading role in the hydrogen economy. The new Masdar will target growth opportunities around the world including in the US, MENA, CIS, APAC, and key European countries as well as playing a central role in providing the clean energy needed for the UAE to achieve its own 2050 net zero target. Growth is expected to come from a combination of new and existing projects, as well as acquisitions. His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of Masdar said: 'As the founding CEO of Masdar, I am excited to see Abu Dhabiā€™s energy leaders coming together to take Masdar to the next level. The Masdar clean energy powerhouse will unlock a new chapter of growth, development, and opportunity for renewable energy and green hydrogen projects, both in the UAE and worldwide. As the UAE delivers on its Net Zero by 2050 strategic initiative and prepares to host COP28 next year, by leveraging the skills and experience of its partners, Masdar will build on its rich legacy as a pioneer in the renewable energy sector, accelerate the delivery of world-scale projects, and help meet the worldā€™s growing demand for clean energy. For ADNOC, our participation in Masdar is an important pillar in our strategy to expand clean energy production, unlock new opportunities for industrial development and drive decarbonization.' His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala said: 'We established Masdar 16 years ago based on an early conviction that building capabilities and supporting innovation and scale across the clean energy spectrum would be transformative for the nation and an investment in future generations. Today, Masdar is one of the worldā€™s fastest-growing renewable energy companies. This significant milestone helps unlock synergies in Masdarā€™s continued growth journey and the UAEā€™s global energy leadership.' Al Mubarak added: 'Global cooperation is vital to achieving the critical scale in clean energy sources, and we are committed to leveraging our partnerships to enable Masdar to deliver a broader global impact.'
  • 3. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 His Excellency Mohamed Hassan Alsuwaidi, Chairman of TAQA said: 'This transaction marks the start of Masdarā€™s journey towards becoming one of the largest clean energy companies in the world, backed by three of the UAEā€™s energy and investment pacesetters. Over the next decade, Masdar will rapidly expand its renewable energy and green hydrogen investments to accelerate decarbonization. Last year, TAQA committed to a renewable energy share of 30% of its total power generation capacity by 2030. Our stake in Masdar is a key part of delivering on this target, while supporting the UAEā€™s ambition to cut greenhouse gas emissions and be a driving force in the global energy transition. Today, we stand as one of the largest integrated utility players in Europe, the Middle East, and Africa. Tomorrow, we will be known as a pan-regional low carbon power and water champion.' Alongside the completion of the transaction, a new Board of Directors has been appointed for Masdarā€™s renewable business with His Excellency Dr. Sultan Ahmed Al Jaber reappointed his position as Chairman. Members include: ļ‚· H. E. Mohamed Hassan Alsuwaidi, Deputy Chairman ļ‚· Jasim Husain Thabet, Board Member ļ‚· Farid Al Awlaqi, Board Member ļ‚· Khaled Salmeen, Board Member ļ‚· Musabbeh AlKaabi, Board Member ļ‚· Ahmed Saeed Al Calily, Board Member ļ‚· Dr. Bakheet Saeed Al Katheeri, Board Member Mohamed Jameel Al Ramahi will continue as Chief Executive Officer (CEO) of the enlarged Masdar. As part of the deal, TAQA will offer to contribute its ownership interests in future Abu Dhabi renewable power projects to Masdar. Masdar City, Abu Dhabiā€™s flagship sustainable urban development, will continue to remain under Mubadalaā€™s ownership as the sole shareholder.
  • 4. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 Saudi Arabia seeks bids for Jubail 4 & 6 desalination project TradeArabia News Service Saudi Water Partnership Company (SWPC) has invited expressions of interest (EoIs) from leading developers to finance, build, operate and maintain a key seawater reverse osmosis (SWRO) desalination water project near Jubail Industrial City. The desalination plant will be located 18 km south of Jubail Industrial City in the kingdom, adjacent to the existing plant units (Jubail Phase 1, Jubail Phase 2, Jubail 3A & 3B), in the Eastern Province of the kingdom. The Jubail 4 & 6 Independent Water Project, which includes the desalination plant and all associated infrastructure and facilities, will boast a total capacity of 600,000 cu m potable water per day. The power supply to the project will be provided from the Saudi Electricity Companyā€™s high voltage network, it added. SWPC said it will be conducting a competitive tender process to select a private developer/developer consortium taht will provide financing, procurement, implementation, operation and maintenance services for the project. The successful bidder, through a project company to be incorporated, would then develop the plant and sell the entire capacity and output to SWPC under a 25-year concession pursuant to a Water Purchase Agreement. The Saudi utility developer has set January 9, 2023 as the deadline for submitting the bids. Leading professional advisors have been signed up for the key project. KPMG Professional Services is the lead advisor and financial advisor; Eversheds Sutherland (International) the legal advisor and WSP the technical advisor.- Dewa receives 29 EoIs for Phase I Hassyan SWRO project
  • 5. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 U.A.E: Dewa receives 29 EoIs for Phase I Hassyan SWRO project TradeArabia News Service Dubai Electricity and Water Authority (Dewa) has announced that 29 major developer/developer consortiums have expressed their interests for the first phase of the 120 million gallons per day (MIGD) Hassyan Sea Water Reverse Osmosis plant. This is the first project implemented by Dewa using the IWP model, which will run in phases during 2025 and 2026. A consortium of companies, including Deloitte, WSP and Addleshaw Goddard, have been signed up to provide consultancy services for the Hassyan desalination project. "We use clean solar power to desalinate seawater using the latest reverse osmosis (RO) technologies, which consume less energy. This supports the UAE Water Security Strategy 2036," remarked Saeed Mohammed Al Tayer, the MD and CEO of Dewa. "According to our plans, 100% of desalinated water will be produced by a mix of clean energy that uses both renewable energy and waste heat. This will allow Dubai to exceed global targets for using clean energy to desalinate water," said Al Tayer. Increasing the operational efficiency in decoupling desalination from electricity production will save around AED13 billion ($3.5 billion) and reduce carbon emissions by 2030," he added.-
  • 6. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 U.S. dry natural gas production set monthly records in 2022 source: U.S. Energy Information Administration, Short-Term Energy Outlook U.S. dry natural gas production has increased during 2022, averaging more than 100 billion cubic feet per day (Bcf/d) in October and November and exceeding pre-pandemic monthly production records from 2019. We forecast that U.S. production of dry natural gas will average about 100.0 Bcf/d from December through March , down about 0.5 Bcf/d from November. This forecast production decrease is primarily due to weather, specifically the possibility of extreme winter weather events and freeze-offs. Mild weather in key producing regions could prevent those declines. The 2022 growth in natural gas production has been driven by increased drilling activity in the Haynesville region in Louisiana and East Texas and in the Permian region in West Texas and Southeast New Mexico. Recent pipeline infrastructure expansions in both of these regions facilitated the increases in production. We expect dry natural gas production in 2022 to set an annual record in the United States, averaging 98.0 Bcf/d. We forecast production to grow slightly in 2023, averaging between 100 Bcf/d and 101 Bcf/d for the year, about 2% more than in 2022. Production in our forecast for the first half of 2023 is limited by pipeline constraints and declining natural gas prices. We expect natural gas prices at the U.S. Henry Hub benchmark to average $5.62 per million British thermal units (MMBtu) in the first half of 2023, compared with our expected December 2022 monthly average of $6.34/MMBtu. In the second half of 2023, developers have scheduled more pipeline infrastructure expansion projects and those projects should contribute to increases in dry natural gas production. If these projects are delayed, it could result in less U.S. natural gas production than we forecast.
  • 7. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 U.S. battery storage capacity will increase significantly by 2025 Developers and power plant owners plan to significantly increase utility-scale battery storage capacity in the United States over the next three years, reaching 30.0 gigawatts (GW) by the end of 2025, based on our latest Preliminary Monthly Electric Generator Inventory. Developers and power plant owners report operating and planned capacity additions, including battery storage, to us through our electric generator surveys. Battery storage capacity in the United States was negligible prior to 2020, when electricity storage capacity began growing rapidly. As of October 2022, 7.8 GW of utility-scale battery storage was operating in the United States; developers and power plant operators expect to be using 1.4 GW more battery capacity by the end of the year. From 2023 to 2025, they expect to add another 20.8 GW of battery storage capacity. The remarkable growth in U.S. battery storage capacity is outpacing even the early growth of the countryā€™s utility-scale solar capacity. U.S. solar capacity began expanding in 2010 and grew from less than 1.0 GW in 2010 to 13.7 GW in 2015. In comparison, we expect battery storage to increase from 1.5 GW in 2020 to 30.0 GW in 2025. Much like solar power, growth in battery storage would change the U.S. electric generating portfolio. Battery storage adds stability to variable energy sources such as wind and solar. Wind and solar are both intermittent resources; they can only provide electricity when the wind is blowing or when sunshine is available. Batteries solve the intermittency problem by storing extra energy produced by wind or solar generators for use later. More than 75% of the 20.8 GW of utility-scale battery capacity that owners and operators reported that they plan to install from 2022 to 2025 is located in Texas (7.9 GW) and California (7.6 GW).
  • 8. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 The large amount of existing and planned solar and wind capacity in California and Texas present a growing need for batter y storage. More utility-scale solar capacity is located in California than in any other state, 16.8 GW, and developers expect to add another 7.7 GW between 2023 and 2025. A total of 10.5 GW of utility-scale solar capacity is located in Texas; developers plan to install another 20.4 GW between 2023 and 2025. In addition, 37.2 GW of wind capacity is located in Texas, more than in any other state, and developers expect to add an additional 5.3 GW over the next three years. As more battery capacity becomes available to the U.S. grid, battery storage projects are becoming increasingly larger in capacity. Before 2020, the largest U.S. battery storage project was 40 MW. The 250 MW Gateway Energy Storage System in California, which began operating in 2020, marked the beginning of large- scale battery storage installation. At present, the 409 MW Manatee Energy Storage in Florida is the largest operating battery storage project in the country. Developers have scheduled more than 23 large-scale battery projects, ranging from 250 MW to 650 MW, to be deployed by 2025.
  • 9. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Netherlands plans to build two nuclear power plants by 2035 Bart Meijer, Reuters News + NewBase The Netherlands is planning to build two new nuclear power plants by 2035, which should supply up to 13% of the country's total electricity production by then, the Dutch government said on Friday. The power plants need to play an important role in the country's energy transition, as the Netherlands aims to make its power production carbon neutral by 2040. The Netherlands derived 12% of its energy from sustainable sources last year. The government expects to build the new plants close to the only one that's currently operational in the Netherlands, in Borssele in the southwest of the country. The government had earlier earmarked 5 billion euros ($5.3 billion) for building new nuclear power plants, out of a total fund of 35 billion euros dedicated to funding the energy transition in the coming decade. Building of the two new nuclear plants is expected to start in 2028. ($1 = 0.9480 euros) Nuclear Power in the Netherlands ( up to date) ļ‚· The Netherlands has one nuclear reactor generating a small amount of its electricity. ļ‚· Its first commercial nuclear power reactor began operating in 1973. ļ‚· A previous decision to phase out nuclear power was reversed, and in 2021 the government announced plans to build two new nuclear units. ļ‚· Its main research reactor produces about half of Europeā€™s medical radioisotopes.
  • 10. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 NewBase December 12 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil gains on uncertainty over U.S. pipeline restart, Russian supplies Reuters + NewBase Oil prices rose more than 1% on Monday as a key pipeline supplying the United States remained shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports. Brent crude futures were up 46 cents, or 0.6%, at $76.56 a barrel by 0500 GMT. U.S. West Texas Intermediate crude was at $71.59 a barrel, up 57 cents, or 0.8%. The price gains on Monday for Brent and WTI follow declines in both grades last week to their lowest since December 2021 amid concerns that a possible global recession will impact oil demand. "Oil prices are higher as the Keystone pipeline remains shut, China's COVID controls ease and on concerns that Russia could reduce output," said Edward Moya, a senior market analyst for OANDA. On Sunday, Canada's TC Energy (TRP.TO) said it had not yet determined the cause of the Keystone oil pipeline leak last week in the United States. It gave no timeline as to when the pipeline would resume operation. Oil price special coverage ļ‚· Brent, WTI rises $1 in early Asian trade ļ‚· Easing COVID measures in China also supportive of oil ļ‚· Keystone pipeline operator has not determined cause of leak
  • 11. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 The 622,000 barrel-per-day Keystone line is a critical artery shipping heavy Canadian crude from Alberta to refiners in the U.S. Midwest and the Gulf Coast. China, the world's biggest crude oil importer, continued to loosen its strict zero-COVID policy, though streets in the capital Beijing remained quiet and many businesses stayed shut over the weekend, with residents saying a return to normal was a long way off. Putin said on Friday that Russia, the world's biggest exporter of energy, could cut production and would refuse to sell oil to any country that imposes a "stupid" price cap on Russian exports agreed by G7 nations. While the uncertainty surrounding European Union sanctions on Russian oil and the related price cap kept volatility high on prices, the sanctions have had a limited impact on global markets so far, ANZ analysts said in a note. Saudi Arabia's energy minister also said on Sunday that the impact of the European sanctions and price cap measures had had no clear results yet, and that its implementation was still unclear. In the U.S., Treasury Secretary Janet Yellen forecast a substantial reduction in U.S. inflation in 2023, barring an unexpected shock. China has been moving away from its Covid Zero policy following a wave of protests, offering prospects for a revival in demand in the worldā€™s largest crude importer. However, a surge in cases is now spurring concern on consumption over winter, with industry consultant FGE saying in a note that the sudden lifting of restrictions could pose downside risks for oil demand. Crude remains on track for its first back-to-back quarterly decline since mid-2019 as the demand outlook sours and thin liquidity exacerbates price swings into the year-end. Investors are also
  • 12. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 weighing the fallout from the $60-a-barrel price cap imposed by the Group of Seven and European Union on Russian crude to punish Moscow for the Ukraine invasion. The risk of a production cut from Russia could potentially add ā€œfresh support to the market ahead of what looks like a challenging 2023,ā€ said Charu Chanana, market strategist at Saxo Capital Markets Pte in Singapore. Supply worries may keep prices elevated despite the risk of lower demand, she said. Treasury Secretary Janet Yellen, one the capā€™s architects ā€” gave a qualified thumbs-up on the initiative, telling CBSā€™s ā€œ60 Minutesā€ that the outcome was ā€œso far, so goodā€. In the Middest East, meanwhile, Saudi Arabiaā€™s Energy Minister Prince Abdulaziz bin Salman said the impact remained uncertain. Following the imposition of the price limit and related curbs, a backlog of tankers waiting to haul oil through Turkeyā€™s vital shipping straits built up amid a dispute over insurance cover. That now appears to be clearing, with a port agent tally on Sunday showing 19 tankers waiting to pass through the Bosphorus and Dardanelles straits, down from a total of 27 on Saturday. Key spreads for WTI and Brent continue to hold in contango, indicating ample near-term supply. Brentā€™s prompt spread ā€” the difference between the two nearest contracts ā€” was 39 cents a barrel in contango, compared with $1.58 a barrel in the opposite backwardated structure about a month ago.
  • 13. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 NewBase Specual Coverage The Energy world ā€“December -01 -2022 CLEAN ENERGY Europe set to import banned Russian diesel without knowing REUTERS + NewBase The European Union banned Russian crude imports from Dec. 5 and will ban Russian oil products from Feb. 5, as it attempts to deprive Russia of oil revenues. Britain ended oil and oil product imports from Dec. 5 European motorists could find Russian diesel in their tanks even after bans take effect because regulators lack tools to trace the origin of fuel when it has passed through other countries. The European Union banned Russian crude imports from Dec. 5 and will ban Russian oil products from Feb. 5, as it attempts to deprive Russia of oil revenues. Britain ended oil and oil product imports from Dec. 5. The challenges in tracking crude once it is refined and diesel once it is blended, mean some Russian diesel is likely to be delivered to and re-exported from countries such as India and Turkey, market sources said. Europe is struggling to replace up to 600,000 barrels per day of Russian supply, according to Eugene Lindell, refining and products market analyst at consultancy FGE. However, the reputational risk associated with buying Russian fuel, coupled with insurance difficulties, means only limited Russian volumes are likely to find their way into Europe, transported by small players.
  • 14. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 HOW WILL DIESEL CUSTOMS AND EXCHANGES POLICE IMPORTS? Dutch customs, who oversee the major Amsterdam-Rotterdam-Antwerp trade and storage hub, UK enforcement authorities, and the Intercontinental Exchange will check official certificates of origin for import ships. In case of doubt, UK and Dutch customs can request additional documents to help determine origin, such as contractual agreements, invoices, or bills of lading. ICE will also look at discharge certificates and proof from refiners that stock is locally refined. Participants using the U.S.-based CME group's exchanges must have their own legal advice and consult delivery terminals to ensure sanctions compliance. WHEN DOES A CHANGE OF ORIGIN OCCUR? To accept any diesel as of non-Russian origin, Britain, the European Union and the ICE require it to be substantially processed outside Russia. "Processing is regarded as substantial only if it results in the manufacture of a new product or represents an important stage in manufacture, and it takes places in an undertaking equipped for that purpose," the UK Government website says. Blending Russian diesel elsewhere with a non-Russian equivalent would not change its origin, while refining Russian Urals crude into diesel elsewhere would. HOW EFFECTIVE ARE THE CHECKS? Britain, the EU and ICE consider diesel to be Russian if it is shipped and reloaded elsewhere. Britain says any processing to change the product must be done for commercial purposes, such as making a finished product to meet new UK specifications, not to avoid the sanctions regime.
  • 15. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 But is it virtually impossible to trace the origin of blended or refined diesel and difficult to track ship- to-ship (STS) transfers, meaning these aspects of the sanctions depend heavily on "good will", two industry sources familiar with import and tracking processes said. The volumes of STS operations between Russian-affiliated tankers have "dramatically increased" since February, maritime analytics company Windward said. "If you were to take Russian diesel out to a more flexible port, you could blend it and issue it with a different bill of lading with a different origin," one of the sources, involved in the storage and transport of petroleum products, said. The sources declined to be named because they were not authorised to speak to the media. HOW WILL THIS AFFECT DIESEL FLOWS? Russian diesel is likely to be delivered to and re-exported from countries such as India and Turkey, market sources said. Russia could use its fleet to move diesel into Turkey where it can be transferred onto medium-range tankers, two industry sources said. "I would have thought that Turkey is re-exporting the barrels or perhaps substituting in-country and exporting more of their domestic output," lead analyst at Kpler Kevin Wright said.
  • 16. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 Britain, the EU and ICE consider diesel refined from Urals outside Russia to be a non-Russian product, which is likely to result in a further shift in trade flows. Europe has already started to replace Russian diesel imports with refined product from the Middle East, but analysts also expect India to refine more Urals and increase diesel exports to Europe.
  • 17. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 WHO COULD TRANSPORT RUSSIAN CARGOES? The EU price cap, which came into effect on Dec. 5, prohibits shipping, insurance and re-insurance companies from handling cargoes of Russian crude, unless it is sold for less than the $60 price set by the Group of Seven nations and its allies. Many of the larger oil companies, including BP and Shell have self-imposed sanctions on Russian oil and oil products. And Russia's determination to stop selling oil to countries or companies abiding by the price cap, coupled with insurance difficulties, means "mainstream tanker owners will be unable to lift Russian crude," French shipbroking firm BRS said. But smaller trading companies are already using shadow fleet tankers, several industry sources said, adding these have arranged insurance with providers in India. BRS says 111 elderly tankers have been sold to private shipping companies since February probably to transport Russian oil. European buyers are also increasingly receiving Russian diesel under the Delivered Ex-ship Incoterms rule, which leaves the responsibility for insurance in the hands of the supplier, an industry source said. HOW WILL THE SHIFT IN TRADE FLOWS AFFECT DIESEL PRICES? Dutch cooperative Rabobank expects this "flux of a global rerouting" to result in higher logistical costs, tighter tanker supply, and ultimately higher prices of imported energy products. "There is a 35-45 million barrel global deficit in middle distillates," Rabobank said. "This structural problem is going to last years."
  • 18. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 NewBase Energy News 12 December 2022 - Issue No. 1573 call on +971504822502, UAE The Editor:ā€ Khaled Al Awadiā€ Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service ā€“ Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 19. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19
  • 20. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20
  • 21. Copyright Ā© 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi ā€“ Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 21